PENN Entertainment (NASDAQ:PENN – Get Free Report) and Trip.com Group (NASDAQ:TCOM – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Risk and Volatility
PENN Entertainment has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Trip.com Group has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500.
Valuation & Earnings
This table compares PENN Entertainment and Trip.com Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PENN Entertainment | $6.96 billion | 0.33 | -$843.10 million | ($6.36) | -2.70 |
| Trip.com Group | $8.94 billion | 2.85 | $4.77 billion | $6.39 | 6.13 |
Trip.com Group has higher revenue and earnings than PENN Entertainment. PENN Entertainment is trading at a lower price-to-earnings ratio than Trip.com Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PENN Entertainment and Trip.com Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PENN Entertainment | -12.66% | 2.93% | 0.39% |
| Trip.com Group | 48.26% | 17.57% | 10.97% |
Analyst Recommendations
This is a summary of current ratings and target prices for PENN Entertainment and Trip.com Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PENN Entertainment | 1 | 7 | 12 | 0 | 2.55 |
| Trip.com Group | 1 | 4 | 9 | 0 | 2.57 |
PENN Entertainment currently has a consensus target price of $23.53, suggesting a potential upside of 37.04%. Trip.com Group has a consensus target price of $62.45, suggesting a potential upside of 59.36%. Given Trip.com Group’s stronger consensus rating and higher possible upside, analysts clearly believe Trip.com Group is more favorable than PENN Entertainment.
Insider and Institutional Ownership
91.7% of PENN Entertainment shares are held by institutional investors. Comparatively, 35.4% of Trip.com Group shares are held by institutional investors. 3.2% of PENN Entertainment shares are held by insiders. Comparatively, 23.0% of Trip.com Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Trip.com Group beats PENN Entertainment on 11 of the 14 factors compared between the two stocks.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
About Trip.com Group
Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.
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